London doesn’t need much introduction being as it is one of the world’s most important and influential cities both historically and in the present.
As well as being a national and global centre for the arts, commerce, education, entertainment, fashion, finance, healthcare, media, professional services, research and development, tourism and transportation, the city also holds one of the largest financial centres in the world.
In terms of population the Greater London Built-up Area is home to about 10 million people, which accounts for 13.4% of the total UK population and makes the city the fourth largest conurbation in Europe after Istanbul, Moscow, and Paris.
Best Mortgage Brokers London Economy
With a GRP (Gross Regional Product) of almost £500 billion in 2018 London is the powerhouse of the wider UK economy and represents around 25% of total GDP of the country as a whole.
London not only has the highest property prices in the UK but is also one of the most expensive in the world. https://en.wikipedia.org/wiki/London#Economy
When dealing with property transactions that are so expensive it is vital that you get the best possible mortgage advice you can by finding the best mortgage brokers London has to offer for your specific requirements.
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Mortgage Broker London – Property Prices
Unlike in most other UK cities the most popular type of property purchase was for flats, which sold on average for £544,904 over the preceding 12 months.
Terraced properties sold for an average of £746,555 and semi-detached houses average sale price was £705,626.
Overall the average sale price across all types of property in London was £674,688, with big variations in cost dependent on which district the property was in.
Central London was unsurprisingly the most expensive at £1,647,016, whilst east London was the cheapest at £493,691
According to Right Move these numbers represented an increase of 6% on 2019 – 20 and up 9% compared to 2018 – 19 when the average house price was £621,758.
Those numbers are made up of 61,000 property sales a figure down 30% on the previous year due to Covid restrictions.
The highest proportion of sales were for mid-range properties with 45% of all sales in the £400,000 to £750,000 bracket.
New builds were more expensive than established properties costing £726,000 on average compared to £659,000.
In order to find a London mortgage company, advisor or broker search our mortgage broker directory to find a mortgage advisor to provide the best London mortgage advice
First-time Buyer Mortgages London
The general UK trend of increasing house prices whilst wage levels stagnate has had visible effect on the property market.
It is clear from the stats that the volume of property purchases by first time buyers has fallen significantly over the last 25 years.
For example, in the 10 years between 2006 and 2016 the number of first-time buyers nationwide dropped by 21,000 from 675,000 to 654,000.
Going back further than that we can see that between 1995 and 2005 there was a decrease of 247,000 buyers.
It is the same trend with the average age of homeowners in the UK – in a statistic that seems quite incredible in 2020, nearly one in three 16 – 24 year olds in 1981 were homeowners, by 2016 that had increased to one in ten and is increasing year-on-year!
Finding London Mortgage Partners For First Time Buyers
London’s property market is something of a different beast in comparison to the rest of the UK due to the fast-rising prices and sheer expense of purchasing property in the capital.
This is reflected in the data for first-time buyers;
in 2006 the average age of the first-time buyer in the UK was 30 years old, in London it was 32. By 2019 that had increased to 34.5 years old in London and 32 years old outside of London.
Mortgage Advice London – First Time Buyers Deposit
With the highest property prices in the UK it is no surprise that first time buyers in London require a much larger deposit than in the rest of the country, what may actually be a surprise is the fact that the average amount required for a deposit in London increased by £20,000 in 2020 alone!
The average first time buyer deposit in London is now over £132,000 – which amounts to on average 24% of purchase price https://www.cityam.com/house-prices-first-time-buyers-in-london-now-need-average-deposit-of-132685/
Across the UK the rise in average deposit was around £12,000, meaning that £60,000 was the nationwide average deposit for all property purchases.
With such large sums at stake it is important to get the best mortgage advice London brokers can offer – click here to use our directory to search for an independent mortgage advisor London https://www.firstrungnow.com/mortgage-brokers/london/
Mortgage Broker London – House Price to Earnings Ratio
The UK average price to earnings ration is around 10, whilst in the better value Northern cities it is closer to 8, London however is in an alternative property universe compared to the rest of the country with a ratio of over 18!
According to The FT;
“London house prices link to earnings is almost entirely dislocated. Property prices closely track earnings in North West and Wales, but not in the capital”
They are reporting on the Savills research that noted;
“The performance of housing markets in the north of England and Wales is linked to what people can afford to borrow based on their incomes… House prices remain relatively affordable to aspiring local buyers, so as earnings continue to grow, we expect to see continued house price inflation. At the other end of the spectrum, house price inflation and earnings growth in London are almost entirely dislocated. In 2015 house prices rose 11% while earnings rose just 1%; conversely earnings rose 7% in the two years to September 2019 while house prices fell by -2%.”
Mortgage Brokers East London
Popular hot-spots for mortgage broker searches in East London are;
- mortgage brokers Ilford
- mortgage broker Canary Wharf
- mortgage broker Romford
- mortgage broker Wimbledon
- mortgage broker Hackney
Mortgage Brokers North London
North London has some very fashionable areas that are much sought after, popular mortgage broker searches in this area are;